Electric vehicle makers want state government to eliminate VAT and road tax

After years of not-so friendly policies for the electric vehicle manufacturers in India, the new government finally showed some support to this heavily taxed industry. It has allotted Rs 75 crore, for faster adoption and manufacturing of electric vehicles in 2015-2016.

The amount allotted is quite less, but the EV makers termed it as a good beginning towards the National Electric Mobility Mission Plan (NEMMP). However, the Society of Manufacturers of Electric Vehicles (SMEV) wants the state government to further support the industry by eliminating road tax and VAT for a few years. Currently, many states have been charging VAT at 14 per cent or road tax of something between four and six per cent. 

"Now that the centre has cleared the roadmap for the growth of electric vehicles in India, SMEV expects states to join in to support this initiative," said  Sohinder Gill, director, corporate affairs, SMEV.

It is high time, the state governments start supporting the EV makers. They have invested heavily in making environment clean and there is a lack of support from the government. It is understood that each and every company does business to make money, however, in this case, the nature of business will keep our environment clean. 

Source: ET